Section 8 Fair Market Rent (FMR) for ZIP 30005 - 2027

Investment Score for ZIP 30005

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,900
1 Bedroom	$1,980
2 Bedrooms	$2,150
3 Bedrooms	$2,560
4 Bedrooms	$3,040
5 Bedrooms	$3,526
6 Bedrooms	$3,949
7 Bedrooms	$4,265
8 Bedrooms	$4,478

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,150	$283,146	0.76%	D
3BR	$2,560	$557,553	0.46%	F
4BR	$3,040	$719,377	0.42%	F
5BR	$3,526	$918,394	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 30005 (Alpharetta, GA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 30005 in Alpharetta, GA, for 2026 is set at $2270 for a two-bedroom unit. This figure represents 15.4% of the median household income of $176,957, which is quite low compared to typical renter affordability standards. However, the actual rental market in this area is significantly higher, with the Zillow median price for a two-bedroom unit being $286,351. The price-to-FMR ratio of 10.5x indicates that the actual market rents are far above what the FMR suggests. This means that Section 8 voucher holders face significant constraints in finding affordable housing. At the FMR of $2270, they would struggle to find units available for rent, as landlords may prefer higher-paying tenants given the high market rates. The voucher program is likely to be underutilized due to the mismatch between FMR and actual rents. #### Affordability & Renter Profile The population of ZIP 30005 is 41,836, with 31.2% being renters. This translates to approximately 13,040 renters in the area. Given the occupancy rate of 95.7%, it is clear that the rental market is tight, with very few vacant units available. The median household income of $176,957 suggests that the majority of residents are well-off, and the high Zillow median price for a two-bedroom unit ($286,351) reflects this economic profile. The high median income and limited rental stock indicate that the market is primarily geared towards higher-income individuals. For those relying on Section 8 vouchers, the challenge is compounded by the fact that their monthly payment of $2270 is only a fraction of what landlords might expect to receive in the current market. As such, this is not an oversupplied market but rather one where demand exceeds supply, especially for lower-cost units. #### Investor Angle From an investor perspective, the ZIP code 30005 presents a mixed picture. While the high median home values and tight rental market suggest strong demand, the actual cash flow potential at FMR levels is limited. To determine if the ZIP is cash-flow positive at FMR, we need to consider the typical rental yields and expenses associated with owning a property. Assuming a conservative annual yield of 5% on the median home value of $286,351, the expected annual rental income would be around $14,317.50, or approximately $1,193 per month. This is significantly below the FMR of $2270 for a two-bedroom unit. Even if we assume a slightly higher yield of 6%, the monthly rental income would still only be about $1,431.50, which is still below the FMR. Given the high cost of maintenance, property taxes, and other expenses, it is unlikely that an investor could achieve positive cash flow solely based on FMR. Therefore, the investment grade for this ZIP code, particularly for Section 8-focused investors, is relatively low. The mismatch between FMR and market rents makes it challenging to attract and retain tenants who rely on vouchers. #### Specific Actionable Insights 1. **Target Higher-Income Renters**: Given the high median income and the tight rental market, investors should focus on targeting higher-income renters rather than relying on Section 8 vouchers. This will ensure better occupancy rates and higher rental income. 2. **Consider Mixed-Income Developments**: If an investor wants to cater to both higher-income and voucher holders, they could explore mixed-income developments. These projects often combine market-rate units with a smaller number of subsidized units, allowing for a balanced approach to profitability and social responsibility. 3. **Utilize Local Housing Authorities**: Engage with local housing authorities to understand any additional subsidies or programs that might help bridge the gap between FMR and market rents. This can potentially make properties more attractive to voucher holders while maintaining financial viability. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors is to **skip** this ZIP code. The mismatch between the FMR and actual market rents makes it difficult to achieve positive cash flow, and the tight rental market suggests that there is little opportunity for attracting voucher holders. Investors should look for areas with a closer alignment between FMR and market rents, or consider alternative strategies such as targeting higher-income renters or exploring mixed-income development opportunities.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.